SPD on finance and taxes

The SPD wants to implement and speed up investment in Berlin's infrastructure during the next term. The money is to come from the state budget, Berlin's SIWA special fund and the federal infrastructure special fund. In the party's view, visible investment strengthens trust in the state and in democracy.

The SPD wants to invest a lot of money in Berlin. The money is for schools, roads, bridges and hospitals. New homes are also planned. This is to be a focus for ten years. The work should go faster than before.

The platform names seven priorities: new housing; roads, bridges and public transit; the energy and heating transition plus climate adaptation; schools, daycare centers and social facilities; hospitals and universities; administrative buildings and police and fire stations; and digitalization. To renew utility networks and transport routes faster, the planning and construction units of the state-owned companies are to be brought together in one place. The SPD sees frequent changes to goals and plans as an obstacle and calls for political consistency. All investment is also to follow gender mainstreaming principles, because the party says good infrastructure mainly relieves people who do a lot of care work.

The SPD wants to increase Berlin's revenue. The Grunderwerbsteuer (property transfer tax) is to go up by half a percentage point, with exceptions for buyers who live in the property. It also plans a packaging tax, higher fines and parking fees, and stronger tax investigation.

Berlin should take in more money. People who buy land or a house should pay a bit more tax. Buyers who live there themselves should be exempt. There should also be a tax on packaging.

Large companies are to pay more property transfer tax in the future. For owner-occupied property, the rate is to fall once the federal government stops so-called share deals, which companies use to avoid the tax. Fines and parking fees are to be adjusted to price trends. Tax investigation and audits are to be strengthened against undeclared work, tax avoidance and evasion. Collection of child support advances, fines and fees is also to improve, with districts getting more staff and technology.

The SPD wants to push at the federal level for a fairer distribution of wealth. Large fortunes are to be taxed more heavily on inheritances and gifts, and a wealth tax is to be levied again. It also wants share deals banned.

Very rich people should pay more taxes. The SPD wants to achieve this at the federal level. There should again be a tax on large wealth. People who inherit a lot should also pay more.

The demands are aimed at the federal level. Inheritance and gift tax is to be reformed so that large fortunes contribute more. Germany has not levied a wealth tax since 1997, and it is to return. Share deals, in which companies buy shares instead of land and thereby avoid property transfer tax, are to be banned.

The SPD calls on the federal government to abolish the Schuldenbremse (debt brake) and wants to use its leeway fully until then. Investment is to stay high while the structural deficit shrinks markedly. It wants to cut spending only cautiously.

The debt brake limits how much debt the government may take on. The SPD wants the federal government to abolish it. Berlin should keep putting a lot of money into the city's future. Cuts should only be made carefully.

The program describes the budget consolidation so far as bringing cuts for many people. The SPD wants to keep borrowing to a justifiable extent and open up room for spending. Investment from the special fund is meant to support growth and thereby broaden the revenue base. Less red tape, digitalization and AI are to make the administration more efficient and free up money. Grants are to be awarded more simply and offer more planning certainty.

The SPD demands that the federal government pay in full for tasks it assigns to the states. In addition, the capital city financing agreement is to be revised so that Berlin's special burdens as the capital are fully offset.

The federal government often gives the states new tasks. The SPD wants the federal government to pay for these tasks too. Berlin has special costs as the capital. The federal government should give more money for that as well.

According to the program, Berlin's spending has risen mainly because of federal laws, without the federal government covering the cost. The SPD wants to change this together with other states. The new capital agreement is to offset burdens in culture, infrastructure and security fully and dynamically. The SPD also welcomes the federal government moving more jobs from the ministries' agencies to Berlin.